DCA Treasury Yields Benchmark for ForexThis indicator provides a benchmark for forex trading based on government bond yields from the US and, where applicable, the foreign currency in the pair (e.g., German yields for EURUSD).
It calculates the average yield across multiple maturities for US Treasuries and supported foreign bonds, then derives a benchmark as the yield spread (US average minus foreign average) or the US average if no foreign data is available.
The benchmark is scaled to overlay directly on the forex price chart, allowing visual comparison of price to yield-implied fair value. Discrepancies are highlighted.
A custom envelope, derived from historical price-benchmark deviations, surrounds the scaled line to indicate potential overvaluation (price above upper envelope, consider sell) or undervaluation (price below lower envelope, consider buy).
Supported foreign currencies : AUD (AU bonds), EUR (DE bonds), GBP (GB bonds), JPY (JP bonds), CAD (CA bonds). For unsupported pairs or non-USD pairs, it defaults to US yields.
Usage : Apply to USD-based forex charts such as EURUSD. Higher US yields or spreads generally support USD strength, lowering inverse pairs (e.g., EURUSD).
Inputs : 'Scaling Lookback Period' adjusts alignment (higher values for smoother scaling); 'Deviation Multiplier' controls envelope width.
Limitations : Bond yields update during market hours only, which may cause data gaps.
This is for informational purposes; combine with other analysis and do not use as sole trading advice.Tested on: EURUSD (with DE yields) - automatically handles inverse/direct correlation.
Chỉ báo Pine Script®






















